Factory overhead rates, entries, and account balance Journal Instructions Chart of Accounts Factory Overhead Rates Instructions Sundance Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows: Factory 1 $1,478,250 Factory 2 $1,023,050 27,650 54,750 Estimated factory overhead cost for fiscal year beginning March 1 Estimated direct labor hours for year Estimated machine hours for year Actual factory overhead costs for March Actual direct labor hours for March Actual machine hours for March $111,040 $103,620 2,750 4,170 Required: a. Determine the factory overhead rate for Factory 1. b. Determine the factory overhead rate for Factory 2. c. Journalize the Mar. 31 entries to apply factory overhead to production in each factory Refer to the chart of accounts for the exact wording of the account titles. d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. Chart of Accounts CHART OF ACCOUNTS Sundance Solar Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 126 Interest Receivable 131 Materials 132 Work in Process 133 Factory Overhead 134 Finished Goods 141 Supplies 142 Prepaid Insurance 143 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation Factory EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Uslities Expense 534 Office Supplies Expense 540 Administrative Expenses 560 Depreciation Expense- Factory 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Utos Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary Instructions Chart of Accounts Factory Overhead Rates Joul Factory Overhead Rates a. Determine the factory overhead rate for Factory 1. per machine hour b. Determine the factory overhead rate for Factory 2. per direct labor hour Factory overhead rates, entries, and account balance Instructions Chart of Accounts Factory Overhead Rates Journal Journal C. Joumalize the Mar. 31 entry to apply factory overtiead to production in Factory 1. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to record the entry for Factory 2 PAGE 10 JOURNAL DATE DESCRIPTION POST. REY DEBIT CREDIT 1 2 Now journalize the second Mar. 31 entry to apply factory overhead to production in Factory 2. Refer to the Chart of Accounts for exact wording of account titles JOURNAL DATE DESCRIPTION POST RET DEBIT CREDIT 1 2 Previous Next > Alloraved Submit Test for Grading Final Question d. Determine the balances of the factory overhead accounts for each factory as of March 31, and indicate whether the amounts represent overapplied factory overhead or underapplied factory overhead. $ Factory 1 Factory 2 $